- Elon Musk disclosed on Twitter Saturday that, due to a 50% drop in advertising revenue and a “heavy debt load,” the platform still has a negative cash flow. The billionaire owner tweeted Saturday, in response to business advice from a follower, “Need to reach positive cash flow before we have the luxury of anything else.”
- Following extensive layoffs and cost reductions in cloud services, Musk confirmed that the company managed to decrease its non-debt expenses from the anticipated $4.5 billion to $1.5 billion in 2023. Additionally, Twitter is confronted with yearly interest payments of approximately $1.5 billion due to the debt incurred from the $44 billion transaction that privatized the company.
Why it matters
After Musk took control, the site faced significant challenges and controversy regarding its ad revenue. Numerous advertisers departed due to apprehensions regarding content moderation, widespread job cuts, and overall uncertainty surrounding Twitter's future.
